Despite a market still coming to terms with interest rate levels not seen in 22 years, the GTA condo sector still saw a surge of new listings hit the market this past month. Despite softening demand, people are transacting — albeit much less so than the previous year. At Strata, it’s our view that many of today’s sales are being driven by circumstance. Whether it’s a failed marriage, new job, or a baby on the way, those who need to move are the ones driving the market.
Meanwhile, there are buyers who don’t necessarily need to purchase right now. But they do recognize that this is a narrow opportunity to secure a property with much less competition. After all, current conditions are still favouring buyers. Condos, on average, are selling 1.7% below the asking price.
Some Strata agents don’t expect this trend to last much longer. As spring approaches, they’re predicting a surge of buyers following months of pent-up demand. Admittedly, we can’t point to any data that supports this. However, many of our buyer clients are saying the same thing: “We’re waiting until the spring.”
After 11 months of declining values, GTA condo prices may have hit a plateau. The month of January settled at $769 per square foot (PSF), nearly identical to December.
In this landscape, sellers will need a solid pricing strategy, plus a lot of patience. Properties are sitting for roughly 33 days; a big contrast from just 9 a year ago. But if you need to sell, don’t be disheartened. The city’s infamous housing shortage could be to your benefit. Overall inventory has been declining since last summer, which tells us that buyers are actually consuming much of that supply.
As for the GTA rental market, prices could be on the rebound. In December, we saw the average lease dip to $2,744 per month. But January ended slightly higher at $2,776. If you’re easy on occupancy dates, try to secure a cheaper lease before the spring. Prices will likely increase towards April as students, working professionals, and many families look to make a move.